ms. yellen's testimony tomorrow? that's the type of testimony that could move the bond market. >> exactly. everybody will be gued to what he says, it will be interesting how she characterizes the weakness, the turmoil in the markets because the fed is in shift mode and started to taper and scale back it's kwaun kquane easing. the size of the taper, whether it's going to continue on the pace that we've seen or pause. if she sounds a little worried, perhaps there will be a trade on that. the taper may not be baked in and that could be a reason to buy stocks. if she doesn't sound worried and says the taper is set to go on or suggest that, that could be a reason, as well. >> sarah eisen here in the role of janet yellen. >> thank you, i got really pumped up. >>> all right. yahoo is reportedly teaming up with yelp to step up the search engine and that's where we begin tonight's market focus. at an employee meeting, marissa mayer revealed plans to incorporate yelp's reviews into yahoo's search results. shares of yahoo were

ms. yellen told lawmakers and wall street that she is staying the course right now. she will continue to taper back on the central bank's asset buying stimulus program and keep record low interest rates right where they are. but she's also keeping an eye on whether the winter unrelenting snow and bitterly cold temperatures have been responsible for the slowdown in job growth and consumer spending that we've seen, or if they're indicate of a larger long-term problem in the economy. the new fed chair is cautious in her long-term forecast for the economy. steve liesman has more on ms. yellen's appearance on capitol hill today, what she said that wall street liked and where she sees the economy heading next. . the new fed chair in testimony before the senate today gave her long-run outlook for the u.s. economy, and it wasn't a pretty one. asked how long it would take for the economy to normalize, janet yellen ven sturdtured several y think. she reiterated the bleak outlook for americans looking for jobs. >> the fact we've seen very slow growth in wages, for example, i ta

ms. yellen's testimony. then it raced right back up and moved through key resistance. silver is second as you know, and it is also to the down side right now. it had been up a little earlier in the session. copper and platinum and palladium mixed on the day. palladium is pulling out just a fractional gain. >>> to the bond market. rick santelli is tracking the action at the cme. >> well, if sherlock holmes was trading, he would say the game's afoot. risk is back in vogue. intraday of the dow and ten-year note yields, and let me give you a stat here. this will be the fourth day of a big rally in stocks which means you have to go back to the 5th of february. that settlement was 15,440 in the dow. we're up 550 points since then. where was the ten year that day? 2.67. up a whopping five basis points. that's the issue. the treasury market is not in sync with this, the correlations are changing and the best gauge for risk, probably the dollar/yen. look at the intraday and open the chart up, it really has made up a lot of ground, reversing in favor of the dollar to the upside.

ms. yellen. if you'll look over this way. yes, we're over here. thank you. and welcome to the committee. >> thank you. >> you have acquitted yourself well today. i'm sure this will be one of many visits that you'll have with us, and i look forward to continuing this relationship. we're in our genesis today, but there's much we can do together. i want to ask just two -- go into two areas. the first has to do with how much of the '08 crisis was cyclical as opposed to structural. because if you apply structural, cyclical remedies to a structural problem, you don't get the desired results. so have you been able to quantify the amount of it that was cyclical as opposed to structural? >> well, when you say that we had serious problems in the financial sector of the economy, we are certainly trying to put in place changes that will make the financial system structurally sounder. but the crisis that was resulted from those weaknesses produced a marked downturn in spending in the economy and raised unemployment, lowered employment. much of that shortfall is cyclical

ms. yellen seemed to give the market exactly what it wanted it today. it kind of reaffirms what you were saying to us the last time you were on, you expected the fed to once they started to pull back on the stimucks plan to continue to do so. are you still as bullish on stocks as you were before? >> well, i think we're bullish on stocks compared to the alternatives. it's clearly not been an easy start to the year for stocks, as we've seen the last four days. there's still a strong bid. when you look at the relative value of stocks, improvement in the economy and the fact that bond by most metrics are still expensive, i don't expect the same types of gains we had in 2000123. yes, i still think for this year stocks look like the better alternative. >> so russ, can we see correction shrorrection it's over? >> the volatility is not over. while we expect gains this year it won't be as peaceful as 2013. part of the reason for that is not necessarily the market has become or likely to become so volatile, but last year was unusually quiet. volatility was suppre

ms. yellen's hand was up stocks went down. the dow fell more than 326 points, s&p 500 gave back 40, but analysts say hey, no biggy. >> it definitely is a healthy thing. we can't have the markets always moving up in one direction. there has to be a two steps forward, one step back approach to our market. >> today was the dow's worst day in more than seven months. so far this year the dow is down more than 7%. s&p is down nearly 6. >>> a $4 million super bowl spot is paying off for one oakland toy company. ♪ come on get your toys girls get your toys ♪ . >> goldly locks beat out fiscal cliff -- goldilocks beat out 15,000 other small businesses. it's meant to inspire the next generation of female engineers. girls swarm the streets with their pink toys and send them to outer space. >>> tonight a warning about yogurt. it has nothing to do with a recall. >> betty yu tells us it has to do with wildlife. >> reporter: he might be looking for a meal in an old yoplait cup, but this skunk is poking his head into a real death trap. >> i wan

ms. yellen's first-order business, is it to explain fed policy as she sees a gap of >> i think it will beplain why the fed targets are on target. they havet, i think been overly optimistic in the forecast. she will have to explain that. whatlso on the targeting, does it matter? she has been one of the more staunch opponents of forward guidance. what does the guidance matter if you get to these targets, as ben bernanke has explained, they are not triggers, but targets. what is the role of forward guidance? it will be a tough one to its plane, but she does need to explain it to the markets. >> and she will be putting the fed's views into her own context , but it is supposed to be a testimony about what the whole fomc thinks, not what janet yellen thinks. not to mention, she has been on the job for 10 days when she testifies. the fomc will not be meeting for another month. i think she will be very cautious. she really does not have the authority to speak beyond what the fomc has done to date. she has not been running the fomc. wehink only get to march, will get a little bit more out of her i

ms. yellen. if you'll look over this way. yes, we're over here. thank you. and welcome to the committee. >> thank you. >> you have acquitted yourself well today. i'm sure this will be one of many visits that you'll have with us, and i look forward to continuing this relationship. we're in our genesis today, but there's much we can do together. i want to ask just two -- go into two areas. the first has to do with how much of the '08 crisis was cyclical as opposed to structural. because if you apply structural, cyclical remedies to a structural problem, you don't get the desired results. so have you been able to quantify the amount of it that was cyclical as opposed to structural? >> well, when you say that we had serious problems in the financial sector of the economy, we are certainly trying to put in place changes that will make the financial system structurally sounder. but the crisis that was resulted from those weaknesses produced a marked downturn in spending in the economy and raised unemployment, lowered employment. much of that shortfall is cyclical

ms. yellen's testimony coming out tomorrow. if you look back at last week's action, does it tell you there's more of a correction to go or have we bottomed out? you are generally bullish into the end of the year. >> i still think we will finish with the high digit gain. we will defy the january barometer effect. if you believe that down 3.5%, we will get to 8%, that suggests we have another 12% upside. i do think there's upside but there's more pull-back in the market because we haven't reached any conclusion around the debt ceiling and the market needs certainty with janet yellen. >> michael, does that go with what you're looking at? you hold your stocks for a long period of time so what are you doing in this market cycle? >> taking very deep breaths. getting through this period of a pull-back which does kind of seem normal. so many people are expecting a 10% pull-back. i tend to think we will probably not get one whenever everyone agrees on something. perhaps more than 10% or falls short of that. i think the trend until furth

ms. yellen testified as the markets are consta -- accustomed themselves to the new overseer." et yellen has turned a cold shoulder to please that reductions in asset purchases will only be influenced by the u.s. economy, suggesting there will be no relief for those countries being battered by the taper." yellen on to say "ms. said that the fed is watching closely the recent volatility. however, she showed no sympathy for complaints that the fed has failed to coordinate its honesty with other countries -- its policy with other countries." alan in tallahassee, florida, republican caller. what do you make of the house are proving this clean debt bill? well, greta, first, thanks for c-span. you are more than fair and you do this country a great favor by letting people voice their opinions. but the fellow who called a couple of calls ago and said that obama is just trying to correct what bush brought on the country is just so off-base. this country has been going in lbjwrong direction since and his war on poverty. and how anybody could blame it on bush is beyond my comfort pension -

ms. yellen is saying.will submit tomorrow. >> i thought that was surprising. stuart: that was a huge surprise to me at least. you do not want any crises. >> the unemployment rate is 6.6%. it stands at 12.1%. for hispanics it is 8.6%. for asians, it is a little over 4%. for young adults, it is 20%. what can this congress do in working in conjunction with the federal reserve to lower unemployment rates for african-americans, for young people, for the latino community, any suggestions? >> we are trying to do what we can with monetary policy. because high unemployment disproportionately fixed many of the groups you mentioned, it will have a great benefit to the groups that you mentioned. monetary policy is not a man asea. i think it is important to pursue other measures. some of those groups have been adversely affected as well by longer-term trends in the economy that has led to very stagnant wage growth for those at the middle and bottom income sector. certainly, almost all economists that i know of think th

ms. yellen and we'll get you back next weekend. >> sounds great. thank you very much. weekend. >> you, too. get yourself a crystal ball. i have one. >>> they might have started the tapering a bit too soon on the quantitative easing. it's not that great. >> there's more to come. we'll have a little bit more of that. >> we'll see janet yellen, see what she does. >>> taking drones away from the battlefield. new concerns the u.s. may lose the basis from which they operate. we're going to tell you why and what this means for the u.s. military. ♪ ♪ (bag shaking) (vo) bring the thrill the catch... now with new shrimp flavor.en. friskies. feed the senses. too small. too soft. too tasty. [ both laugh ] [ male announcer ] introducing progresso's new creamy alfredo soup. inspired by perfection. new creamy alfredo soup. [announcer]...if you think the best bed for one of you might be a compromise for the other one... [woman]ask me about our tempur-pedic. [announcer] they're sleeping on the newest tempur-pedic bed... the new tempur choice... [man]two people.two remotes. [announcer]

ms. yellen as much as she won't express it explicitly is keen on getting rid of qe. can't see where the benefits are and it is about that cost-benefit analysis. the friday data that we had was the auto sector lost quite a lot of momentum. whether that's actually demand related or weather related is written in the stars. i wouldn't want to prejudge that. i think the u.s. has good momentum. i think overalthough in terms of the debate on global growth, i think there is probably too much optimism on the developed world outside of the u.s. there's probably too much pessimism on the emerging. >> they might -- which will probably cancel each other out. i think in some of the countries which we were worried about before like indonesia are carrying some positive signs. >> thanks for joining us today. mark oswald, strategist at monument securities. >>> now stocks of japan's largest shopping mall plunged on friday. it was after the prices had closed. we have news from the nikkei from tokyo. hi. >> reporter: hi, ross. the shares were down 13% at one point and finished 9% lower.

ms. yellen, you alluded to continuing the policies that were initiated by the committee that you served on with mr. bernanke. i am a supporter of quantitative easing. i would like to hear from you what you think quantitative easing did to stabilize this economy. can you tell us, not only what you think happened with quantitative easing, but how you continue the policy on tapering as it is today? >> thank you, congressman waters. the purpose of quantitative easing -- we have been buying longer-term treasuries and agency backed securities, the objective has been to push down the long term interest rate. i believe we have succeeded in doing that. enter more broadly make financial conditions accommodative. the purpose is to achieve more rapid economic growth. and i believe that we have been successful. some examples would be that, as mortgage rates fell to historically low levels, we certainly saw a pickup, a very meaningful pickup, in housing activity. we have also seen a meaningful increase in house prices. i think that that improves the security of a large number of households. many househo

ms. yellen saying such, putting such a dramatic faith in the dual mandate? if it is orthodoxy that we cannot influence the labor market in the long run with monetary policy. >> so i agree about the long run. that is influenced by the structure labor market competitive conditions and labor market, matching skills to jobs, et cetera. in the short to intermediate run, monetary policy can influence the labor market. >> has its? >> and the federal reserve recognizes this and the policy statement they put out in january of every year recognizes that they don't have control over the longer run but they do have influence over the short run. >> you talk about counterfactual. we have been doing this now for five years. has the zero interest rate policy of quantitative easing added jobs in the short-term? >> yes. >> you wouldn't agree with me that most if not all of the decline in the unemployment rate we see is people losing -- leaving the job market? >> i think we've had some of both. depends on which survey you look at. .. of both. on the survey of businesses they h

ms. yellen, thank you very much for staying all day with us today and congratulations on your recent confirmation. >> thank you. >> at a hearing with your predecessor, mr. bernanke my mother sent me an e-mail during the meeting. she's a retired schoolteacher and my some said tell mr. bernanke that we would like more interest on our savings. this is that i hear from my constituents in my rural arkansas district. they are prudently investing in things like cds and money market accounts and falling behind because of the low interest rates of the last five or six years and feel that it would be unwise to invest in riskier assets that are more suitable for younger people. i had some questions about that but i think maybe the best way to raise them is through this video that retired navy commander has made expressing some of the aim concerns. >> my name is joe. i served in the navy from 1960 to 1983 with three combat tours to vietnam '68, '69, '72 and the israeli war in '73. i developed defense electronic systems for 25 years. now semi retired i use my experience to help other companies grow and to sup

ms. bloomer television is on the markets. -- stocks are rising for the fifth straight day above its record high close. can it stay and close at 1849? it also comes as janet yellenstimony in washington saying the fed may change the trajectory. they could possibly delayed if the economy weakens. individual movers we're watching. dan is putting pressure proposing three on the board, including himself. his 9.5% stake -- he says current director, fresh perspective. we are watching shares of a it came in higher than analyst estimates. we know he has seen success with his new loyalty program. that is it. more bloomberg west is coming up after the break. sizes hi >> to help the company meet profit goals and adapt. workers in vermont, new york, and minnesota, were among those let go. china's largest internet search and -- engine. from a yearse earlier. the spending is curbing earnings growth. google can now add the polar bear capital of the world to its mapping. polarmpany teamed up with bear international to chart the frozen tundra. and specially adapted be -- vehicle, the goal to bring attention. did not know there was such a place. we're taking an in-depth look at go

ms. mccore think from new york back with us today. [ applause ] thank you, mr. chairman. it is with great pleasure that i welcome, chair yellen, to deliver your first-ever humry-hawkins act report and testimony. chairman yellen your presence here today is both historic and well deserved. your record of distinguished service in government, academia, and at the federal reserve make you uniquely qualified to navigate the considerable economic challenges that lie ahead. your career in public service has been marked by high praise from economists and policymakers across the political spectrum. and in face of increasingly complex and interconnected global economy your sound judgment on the risks to economic growth and stability has been validated time and time again. in the run-up to the 2008 financial crisis, you accurately identified the looming risk to the economy and spoke up, telling colleagues, i quote, the possibility of a credit crunch developing and of the economy slipping into recession seem all too real, quote/unquote. when the crisis hit, as you predicted, you pushed to challenge conventional thinking about the limits o

ms. mccore think from new york back with us today. [ applause ] thank you, mr. chairman. it is with great pleasure that i welcome, chair yellen, to deliver your first-ever humry-hawkins act report and testimony. chairman yellen your presence here today is both historic and well deserved. your record of distinguished service in government, academia, and at the federal reserve make you uniquely qualified to navigate the considerable economic challenges that lie ahead. your career in public service has been marked by high praise from economists and policymakers across the political spectrum. and in face of increasingly complex and interconnected global economy your sound judgment on the risks to economic growth and stability has been validated time and time again. in the run-up to the 2008 financial crisis, you accurately identified the looming risk to the economy and spoke up, telling colleagues, i quote, the possibility of a credit crunch developing and of the economy slipping into recession seem all too real, quote/unquote. when the crisis hit, as you predicted, you pushed to challenge conventional thinking about the limits o

ms. mccarthy back with us today. [applause] thank you, mr. chairman. it is with great pleasure that i tocome you chair yellen deliver your first testimony. your presence here today is historic and well deserved. your record of distinguished service in government, academia, and that the federal reserve makes you uniquely qualified to navigate considerable challenges that lie ahead. your career in public service has been marked by high praise from economists and policy makers from across the political spectrum. in the face of an increasingly complex and interconnected global economy, your sound judgment has been validated time and time again. in the run-up to the 2008 financial crisis, you actively identified the risk to the economy and spoke up, telling colleagues, " the possibilities of a credit crunch developing, and economy slipping into recession seem all too real." challenge to conventional thinking about the limits of monetary policy and appropriately encourage the fed to act. the economic data seems to the recovery still fragile. your willingness to think outside the box is more important than ever. like many of my colleagues, our